5 Advantages Of Small Business Ownership

A small business is defined as “one which is independently owned and operated for profit and is not dominant in its field.”

The Small Business Administration (SBA) uses certain criteria or guidelines for defining a small business, one of which is the company should have no more than 500 or fewer employees.

Today, there are almost 28 million small businesses in the U.S. and over 22 million are self-employed with no additional payroll or employees.

Moreover, over 50 percent of the working population works in a small business.

The fact is small business ownership is part of the driving force of the American economy not only because of the opportunities it affords the individual entrepreneur but also its net contribution to the society.

There are many advantages that small business ownership provides. Some of these include:

1) Independence

As a small business owner you have your own independence. You answer to no one but yourself and make your own decisions. You are your own boss and pretty much do whatever you want.

2) Financial rewards

The chances of getting wealthy by having your own business far exceeds that of working a 9 to 5 job. However, it must be pointed out that it involves a greater degree of risk.

3) Lifestyle

It affords you more time to do what you want to do and offers the type of flexibility and freedom that one would not normally have as an employee.

4) Personal satisfaction

As a business owner, you have the satisfaction of working in a business that you have created and therefore you will feel more motivated. It also allows you to develop closer relationships with employees and customers as well as gives one a feeling of pride in ownership.

5) Creative Freedom

As a business owner, you get to implement your own ideas as well as to utilize your own knowledge and skills set in analyzing and solving problems within your own business. You also get to bring your own creativity and use your initiative in developing and carrying out your own business plans and strategies.